Spotlight on delivery in defence: Performance turnaround
The Value Add and Outcomes Five-year plan developed and approved by board and stakeholders. Components for submarines were on track and all arrears cleared. Scores improved: Quality 100% (was <50%), Delivery 85% (was 6%), Planning 78% (was 4%). Business transformed and strengthened: H&S regime improved and reports of injury and dangerous occurrences reduced Security Controller function re-established, security systems plus cyber essentials deployment £10m+ investment in Electric Arc furnace replacement plus two state of the art machining centres Replacement ERP system integrated with new Planning & Scheduling tool and Shop Floor data capture system New management team (CEO, COO and CFO) Secured sufficient bank funding. “You can get stuck with a management style that you’ve had for some time, and what Project One has done is bring in a new style and new discipline, I’m sure that myself and the board of directors have learnt from that and will take it forward. The most important aspect here is that we’re doing something different because Project One has brought that style into the company. We have changed and you’ve had a big part to play in that.” CEO
The Challenge The initial task was to deliver on the stabilisation plan which included cost savings, significant investment into critical equipment, recruitment and re-negotiation of customer contracts. Within the initial months of the programme, it became apparent that a five-year plan was needed to provide direction for the business, provide a clear transformation roadmap and to secure a new financing package.
Our Approach Project One’s role evolved from implementing the initial stabilisation plan to driving the creation, approval and implementation of a five- year plan to strengthen the business. In addition, Project One also: Plugged a leadership and management vacuum at the top of the business including CEO, COO and CFO Rapidly established stakeholder confidence and maintained this throughout the assignment Initiated, facilitated and drove a process that provided the business with a vision, strategy and plans that were approved by the Executive, Board and Stakeholders. This built stakeholder and financier confidence enabling the re- negotiation of client contracts (an additional £30+m over what was planned) and being offered a four-year banking facility extension The transformation journey has laid down process and technology foundations that have improved business capability and performance.
Our customer is one of the UK’s largest independent steel companies, and one of the largest private sector employers in their locality. The organisation is an employee-owned business making very large forged and cast engineering parts. Most of its products are bespoke and this includes critical components for the UK and US submarine defence programmes. Due to the decline in both oil and steel prices, they began to lose money and when a potential purchase of the business fell through, the company needed support so it could continue to trade. This support came from its financiers and Tier 1 UK submarine customers. Additional stakeholders included three government departments; MOD (for the submarines), BEIS (as they were seen as a steel business) and Treasury (UKGI a department within Treasury used by other parts of government where commercial issues are at play). A stabilisation plan was developed and part of that required the recruitment of a COO. Our customer is a critical part of the defence supply chain, as they are regarded as the sole capable supplier to key partners in the sector.
“I really like the Project One DNA. There’s a discipline about Project One – we’ve got a turnaround plan and it’s about making sure we don’t deviate from what we’re meant to do. They know how important it is for the company to make crucial improvements and are pushing us every single day.” CEO
14
15
real change • real difference
Made with FlippingBook - Online catalogs